In another hadith it is stated, “Every loan that yields a benefit is ribā.” And in a report traced back to Anas: “When one of you grants a loan, and the borrower then offers him a gift or allows him to ride his animal, he must neither ride it nor accept the gift—unless such exchanges had already occurred between them beforehand.” Ibn Mājah transmitted this report, and it has many corroborating chains.

It is also authentically related that ʿAbd Allāh ibn Salām—may Allah be pleased with him—said, “If you are owed a debt by a man, and he presents you with a load of straw, do not take it, for that is ribā.” Because a Companion would not speak on such matters from personal opinion, this statement is treated as marfūʿ, i.e., effectively traced back to the Prophet ﷺ.

Hence, a lender is not permitted to accept a gift or any other benefit from the borrower if that benefit is connected to the loan, for the texts prohibit it outright. A loan is meant to be an act of kindness to one in need and a means of drawing nearer to Allah. When the lender stipulates, seeks, or even anticipates an increment, he turns the loan away from its purpose—seeking Allah’s pleasure by relieving the borrower’s hardship—and into a profit-making venture. At that point, it ceases to be a lawful loan.

A Muslim must therefore be vigilant, beware of this practice, and purify his intention in lending and in all other righteous deeds. The aim of a loan is not material gain but spiritual growth: to draw close to Allah by meeting the needy person’s need while merely recovering the principal. When this is the intention, Allah places blessing and wholesome increase in one’s wealth.

It should also be understood that the impermissible increment in a loan is the increment that is stipulated—such as saying, “I will lend you such-and-such on condition that you repay me the money….”